Deals
HNA's Airline Unit Scraps Bond Sale as Surging Yields Sting
- Development comes after recent jump in China local note yields
- HNA units stepped up bond sales recently despite higher yields
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Chinese conglomerate HNA Group Co.’s flagship carrier canceled a planned bond sale after weeks of soaring interest rates that had forced the debt-laden group’s units to pay some of their highest borrowing costs ever.
Hainan Airlines Holding Co. had planned to sell 1 billion yuan ($151.2 million) of the perpetual securities in China’s local market this week to repay maturing debt, according to a prospectus posted Nov. 30 on the Chinamoney website. The cancellation comes amid growing strains for HNA Group from a debt-fueled $40 billion acquisition spree across six continents. The deals have invited scrutiny from regulators across the globe and put the company in the crosshairs of a Chinese government that’s clamping down on capital outflows.